S&N seals the Foster’s Deal

Australian lager brand Foster’s is to become a fully fledged Pom this summer, following its purchase by the UK’s biggest brewer, Scottish and Newcastle (S&N).

The company already brews and distributes the beer in Europe, but under the new deal it will own the Foster’s in the UK and the rest of Europe, including some Eastern European nations and Turkey. Following the deal, Foster’s Group will retain ownership of the brand outside of those areas.

“Foster’s will always be Australian for beer,’” said Trevor O’Hoy, president and CEO of Foster’s Group. “It will continue to represent the Australian way of life in more than 150 countries around the world.”

S&N bought the brand for a reported £309 million and is expected to raise £210m of that in a share-placing exercise; it will also increase borrowings.

S&N’s chief executive Tony Froggatt commented: “As an Australian, I am proud that S&N is the custodian of one of Australia’s best-known brands.”

Foster’s lager is most popular in the UK, where, some reports claim, it accounts for around 82% of total global sales.

db May 2006